Morning Briefing - 15 September 2026
CommoPlast Tuesday, 15 September 2026
commoplast.com
MARKET MOVEMENT
|
Brent CRUDE · $/BBL |
|
WTI CRUDE · $/BBL |
|
105.68 |
101.39 |
|
|
▲1.07 |
▲1.34 |
|
▲ Naphtha CFR JAPAN |
|
≈ Ethylene CFR NEA |
|
≈ Ethylene CFR SEA |
|
≈ Propylene FOB KOREA |
|
≈ Propylene CFR CHINA |
Closing prices, previous trading day. Monomers show direction only. Other monomers than naphtha are unavailable today.
TODAY’S DEVELOPMENTS
POLYPROPYLENE · INDONESIA
SEA homo-PP offers to Indonesia break $1,400/ton on Middle East risk and China strength
Southeast Asian homo-PP yarn offers into Indonesia pushed past $1,400/ton at the close of last week, the highest level since May's US-Iran driven spike, as a fresh geopolitical risk premium and firming Chinese costs combine to push sellers higher. Vietnamese and Thai producers have both priced above the threshold, as continued Middle East tensions feeding directly into feedstock security concerns, while China's own domestic homo-PP market has broken through CNY 10,000/ton on tight local feedstock supply.
Buyer response has stayed muted, with converters unable to pass higher costs downstream and few deals concluding at current levels as the market holds off to see how the standoff resolves.
That patience may not last, however, as tightening domestic supply could soon force buyers to choose between paying up or scaling back operating rates, keeping sentiment on edge through the coming sessions.
Read full story:
Southeast Asian homo-PP yarn to Indonesia hit May highs as Middle East tensions flare collides with China’s rally
POLYMERS · CHINA
China's oil demand set for third straight annual decline
China's oil demand is projected to fall 3.9% in 2026, marking a third consecutive annual decline, with Sinopec's research arm also forecasting refining capacity shrinking up to 5.5% by 2030 as small and simple-slate refineries get squeezed out. Gasoline and diesel are leading the drop, even as jet fuel demand holds up, reinforcing the structural nature of the shift rather than a cyclical dip. The demand destruction has been a key factor capping China's crude imports stemming from the ongoing Strait of Hormuz disruption.
Notably, chemical industry profits have surged over 50% year-on-year even as ethylene-equivalent consumption is set to contract 8%, pointing to margin recovery built more on cost relief and supply discipline than genuine demand strength.
With Sinopec itself holding throughput targets flat into the second half and capacity elimination set to accelerate through 2030, expect China's refining sector to keep prioritising rationalisation over growth, a dynamic that should continue limiting China's pull on global crude demand even if geopolitical supply risk stays elevated.
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